Business Builders

Stay on top of all the trends and challenges facing your business today - including legal advice, ways to maximize profits, how to build a winning team, and much more. Industry-leading experts provide gold-standard education content that's practical and relevant to YOU!  

View archived Business Builder articles.

August's Featured Speaker: David Turk, Indiana Market & Catering

David was recently a speaker at the International Restaurant & Foodservice Show of New York. 

The Five F's or How to Craft a Strategy for Long-Term Financial Prosperity

Understanding the 5 F’s is the key to determining your price and profit structure.

In order to come up with the “right price” to charge your client, it is crucial for off-premise caterers to understand the value for themselves of taking on a party in the first place.

This is what I call the 5 F’s: important considerations when coming up with your price. 
1. Fun!
Yes, we realize that the party guests will likely have a wonderful time; but what about us?  Will this be a joyful experience for the caterer?  Or misery from the very first phone call to the final clean up?  This is an often overlooked component when trying to figure out whether a party is “worth it” for us………..or not.

2. Fame
To what extent will we be proud of being able to say we served this particular client?  If you had the opportunity to serve the President AND the Pope at the same party, how might that impact your pricing?  Is there a price tag that you can place on your ability to mention the client’s name in your promotional materials?           

3. Future Business
Is this party going to be a one-off after which you will never hear from the client again?  Or is there repeat business to be had?  Take into account the lifetime value of a client when pricing your product.

4. Fill the date
Are you anticipating that you will have a slow day in August that is begging for business?  Or expecting a crazy, super-insane night in the middle of December for which demand is huge?  Take your need to fill the date into consideration when giving a quote.  The greater the demand, the higher the price.

And then…

5. Fortune
After everything else is taken into account, what amount of profit would make it worth your while to take on this party?  That is, what is the right price to charge?
So, in summary, the first four F’s are just the starting point, and then….

  • Take your client's budget into consideration
  • Have a sense of what the competition is charging and what the market will bear (“a sense" is the important part; don't allow this factor to completely drive you)
  • Understand your client’s expectations are their emotional connection to the party. 

and then,

  • Charge what you can, using ethically sound selling strategies (primarily by engendering long term, confidence-creating relationships). 

Now, go out there and take care of the most important asset your business has…………..YOU!

More about David Turk:
David Turk is the founder and president of Indiana Market & Catering, a full-service caterer in New York City. Over the past 30 years, David’s leadership has made Indiana one of New York City’s top caterers. Named Best Value/Dinner Caterer in New York Magazine and one of the highest rated caterers in the Zagat’s Marketplace Guide NYC and known for its innovative American cooking, high standards and excellent service, Indiana has been responsible for organizing thousands of events throughout New York City. In addition, David has consulted, written and lectured around the country on the art of customer service and the business of catering. His hosts have included the American Institute of Wine and Food, NYU, Society for Women in Foodservice, New York Restaurant Association, James Beard House, The New School, The New York Restaurant School, Catersource, ISES, Institute of Culinary Education, Learning Annex, The Special Event, and The Fancy Food Show. His articles have appeared in Catering Magazine and Catersource. 




July's Business Builder - The Secret to Getting More Positive Yelp Reviews for Your Restaurant
June's Business Builder - 6 Restaurant Systems to Use to Avoid Failure
May's Business Builder - Take My Sage Advice: Count the Carrots
April's Business Builder - How to Choose the Foodservice Software that's Right for You
March's Business Builder - Are Restaurateurs Missing the Boat When it Comes to Accomodating Dietary Issues
February's Business Builder: Is Negativity Poisoning Your Workplace
January's Business Builder: 
Marketing Beer, Wine & Liquor at a Restaurant 
November's Business Builder: Top 20 Drivers of Restaurant Loyalty
October's Business Builder - It's In My Blood
September's Business Builder: Stop the Bleeding Now
August Business Builder - LeaderCHOICES - Unlocking Your Leadership Potential
July Business Builder - The Big Money Maker: An Intro to Full-Service and Off-Premise Catering
June Business Builder - Managing Generational Conflict
May Business Builder - Top 5 Reasons Why Your Business Needs a Video
April Business Builder - How to Lead Your Brand Into Menu Labeling
March Business Builder - 5 Best Practices to Improve Morale in Your Restaurant

February Business Builder - Four Steps to Build Your Network to Increase Your Networth by Kathleen Wood
January Business Builder - Defining Your Restaurant's Customer Experience by Joel Cohen
November Business Builder - Gluten-Free Menus Can be a Challenge - Or Not
October Business Builder - Understanding How Far in Advance to Initiate the Lease Renewal Process
September Business Builder - The Key to Running a Profitable Restaurant by David Scott Peters
August Business Builder - Improve Your Menu Engineering by Mark Kelnhofer
July Business BuilderRestaurants that Cater - Set a Minimum to Make You Money by Sandy Korem
June Business Builder - 5 Leadership Traits Required for Growing Restaurant Business by Darren Denington